mm lecture 1 - marketing management

8/6/2019 MM Lecture 1 - Marketing Management

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Management

Marketing


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Management Introduction

Facilitator:Ahmed Mohamed

Email: [email protected]

Tel: 7792642

Sessions

Saturday

Approach

Assessment


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What is themost successfulbrand of the past century?

Marketing Power!

What is the mostfamous

brand of the past century?

13 April 2011 Ahmed Mohamed 3


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Marketing Power!

In 1975 critics alleged that Coca Cola and Pepsi Cola are

identical drinks, with no meaningful differences

Pepsi responded with a blind test

At malls, shopping centers and other public locations, a Pepsi

representative sets up a table with two blank cups, one

containing Pepsi and one with Coke

Shoppers are encouraged to taste both colas, and then select

which drink they prefer. Then the representative reveals the two

bottles so the taster can see whether they preferred Coke or Pepsi



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Marketing Power!



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Marketing Power!

What do you think wasthe outcome?



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Marketing Power!

In the blind taste tests more consumers preferred the tasteof Pepsi to that of Coca-Cola

Pepsi claimed its Cola tasted better

Pepsi turned these tests into a memorable TV campaign

Pepsi began to outsell Coke in the US market

Similar secret tests by Coke revealed that life-long Coke

lovers picked Pepsi in the blind taste tests!

In 1983, Coke launched the New Coke with improved

taste



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Marketing Power!

Was the New Coke a

Success?

What Lessons can we

Learn?


Was do you think ofCokes approach?


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Marketing Power!

Who learned the lessons?


As soon as we started listening

to them, consumers responded,

increasing our sales from 9 billion

to 15 billion a yearSergio Zyman- Cokes CMO


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Importance of Marketing

Marketing is not a function, it is the whole

business seen from the customers point of

view. - Peter Drucker, management guru

Marketing is too important to be left to the

marketing department. -David Packard,

computer founder



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What is Marketing?

Marketing is human activity directed atsatisfying needs and wants

- Kotler

Themanagement process responsible for

identifying,anticipating andsatisfying

customer requirementsprofitably

- CIM



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What is Marketing?

Marketing is an organizational function and a

set of processes for creating, communicating and

delivering value to customers and for managing

customer relationships in ways that benefit the

organization and its stakeholders- The American

Marketing Association Social perspective & Management perspective



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What is Marketed?

Goods Services

Events

Experiences

Persons


Places

Properties

Organizations

Information

Ideas

Amarketer is someone seeking a response

(attention, purchase, vote, donation, etc.) from

another party called theprospect


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States of Demand

Negative- dislike

Non-existent- unaware/uninterested in the product

Latent- not addressed by an existing product

Declining- falling demand

Irregular- Seasonal (could be even daily)

Full- adequately buying

Overfull- Excess

Unwholesome- undesirable



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Markets

What is a Market?Market Place, Market Space, Metamarket- (spread across

diverse set of industries- e.g. Travel/tourism)

The Five Basic Markets:Manufacturers

Resource Markets

Intermediaries

Consumers

The Government


Four Customer Markets:Consumer Markets

Business Markets

Global Markets

Non-profit &

Governmental Markets


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A Simple Marketing System

Industry

(a collection

of sellers)

Market

(a collection

of Buyers)

Goods/services

Money

Information

Communication



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Company Orientations...

Company Orientations Towards theMarket Place

Production concept

Product concept

Sales concept

Marketing concept

The Holistic Marketing



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The Production Concept

It holds that consumers prefer widely available and inexpensive

goods

Businesses concentrate on production efficiency, low cost, and mass

distribution (makes sense in developing countries such as China, e.g.PC manufacturing)

May work when:

The market is low cost and high turn over

There is high demand for products The firm has capacity for mass production

Buyers are sensitive to price

There is low marginal production cost




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The Product Concept

Holds that consumers favor best-in-class products

(quality, performance, features)

Businesses concentrate on making superior products

and on encouraging innovation

What could be some of the benefits and shortcomings ofthis orientation?




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The Selling Concept: Companies sell what it makes- do not make what it can sell?!

Practiced most aggressively with unsought goods, like

insurance. Profit through sales volume (low margin). Businessesinvest in distribution, sales effort, and promotion

Is this a realistic approach? When will it work?

What could be some of the benefits and drawbacks of this

orientation?




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The Marketing Concept:A shift from product-centered (make-and-sell) to customer-centered

(sense-and-respond) philosophy

The job is not to find the right customers for your products, but the

right products for your customersIts about being effective in creating, delivering and communicating

customer value - profit through customer satisfaction. Build the

organization around the requirements of chosen customers

Reactive- focus on expressed needs

Proactive- probe & learn- anticipate

Total Market Orientation- practice both reactive & proactive




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The Holistic Marketing Concept:

- Everything Matters- end-to-end marketing

Relationship marketing: develop deep, enduring relationships

with key parties (i.e. customers, suppliers, distributors, partners)

Integrated marketing: all marketing activities are coordinated

to maximize their joint effects (i.e. choose activities that reinforce

and complement each other)

Internal marketing: Also called workplace marketing.

Marketing must be pervasive throughout the company. Make sure

everyone thinks customer.

Socially responsible marketing: considers ethical,

environmental, legal and social context.




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Holistic Marketing Concept



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Marketing Mix Components



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Fundamental Marketing Concepts

Needs, Wants & Demands

Segmentations, Targeting & Positioning

Offerings & Brands

Brand- offering from a known sources

Value & Satisfaction

Value: Costs & benefits to customers (Value triad = Quality,

Service & Price)

Satisfaction: Comparative judgement

Marketing Channels

Communication, distribution & Service channels



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Fundamental Marketing Concepts

Supply Chain Competition

Marketing Environment

Task Environment- immediate actors involved inproducing, distributing & promoting the offering-

suppliers, dealers, distributors, etc..

Broad Environment- PESTEL



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Selling Vs Marketing

Selling focuses on the needs of the seller; marketing onthe needs of the buyer. Selling is preoccupied with the need

of the seller to convert his product into cash; marketing

with the idea of satisfying the needs of the customers bymeans of the product and the whole cluster of offerings

associated with creating, delivering and consuming it

-Levitt: Marketing Myopia



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Marketing in Action..


A Professor Explained to the students...

You see a gorgeous girl at a party..you go up to her and

say.. I am very rich, marry me!! * that s direct

marketing *

You are at a party with bunch of friends and see a

gorgeous girl... one of your friends goes up to her and

pointing at you, says... he is very rich, marry him

*that s Advertising*

You are at a party and see a gorgeous girl... She walks

up to you and says... You are very rich, marry me

*that s Brand Recognition*


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get her telephone number... The next day you call and

say.. Hi,I am very rich, marry me!! * that s Tele-

marketing*

You are at a party and see a gorgeous girl.. You get up

and straighten your tie, you walk up to her and pour her

a drink, you open the door (of the car) for her, pick up

her bag when she drops it, offer her a ride and then

say...By the way, I am very rich... Will you marry

me?!! *that s Public Relations*



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say.. I am very rich, marry me!! She gives you a nice

hard slap on your face!* that s customer feedback!! *


before you could say anything.. Another person comes

and tells her.. I am very rich, marry me!! and she

goes with him!!* that s competition eating into yourmarket share!! *



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say.. I am very rich, marry me!! and she introduces

you to her husband!! * that s demand &supply gap!! *


before you could propose her.. your wife arrives...

*That s restriction for entering into new markets!! *


mm lecture 1 - marketing management

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